Junior Gold Stocks: Half Year Report Card

Please click
here now. That's the hourly bars gold chart. A persuasive argument
can be made that gold staged an upside breakout last night.

The range of $1305 - $1326 was decisively penetrated to the upside, and
gold traded as high as $1335.

In 2013, I asked my subscribers, who I refer to as "golden marines",
to focus their buying in the $1228 area, with an emphasis on gold stock.
Gold is now about $100 above that key buying area.

Please click
here now. I've highlighted a bull flag pattern breakout on this daily
gold chart. Even if the flag pattern fails, and the 14,7,7 Stochastics
oscillator suggests it could, that failure would likely create a powerful
right shoulder, completing a bullish inverse head and shoulders bottom
pattern.

I don't think it's that important for investors to try to guess whether
gold is topping out in the short term, or beginning a new leg higher. I would
argue that an obsession with calling minor trend tops and bottoms can destroy
wealth, rather than build it.

It's much more important to stay focused on the very bullish big picture. On
that note, please click
here now. This weekly chart shows the 14,3,3 series Stochastics oscillator
in rising mode, and a giant inverse head and shoulders bottom pattern dominates
the chart.

India's new government budget is scheduled to be announced on July 10.
That's a key date for any citizen in the world gold community. Many gold
dealers believe Prime Minister Modi will announce a significant reduction
in gold import duties and regulations.

I agree. The current gold price rally could take a needed breather as the
budget is announced. It would be a classic case of "Buy the rumour, and
sell the news."

Regardless, it's critical that these restrictions and duties get reduced,
and I believe the very bullish picture presented by the weekly and monthly
gold charts suggests that Modi is set to release an enormous amount of pent-up
Indian demand, over the next six months.

Also, the US Employment Situation (jobs) report is scheduled for release
on Thursday, and Janet Yellen makes a key speech in Washington on Wednesday.

Gold often sells off as the jobs report approaches, but that hasn't happened
this time, adding to the overall bullish sentiment in the air.

Please click
here now. This monthly gold chart looks spectacular. Note the
RSI oscillator at the top of the chart. It is making new highs, and that's
bullish.

The 14,3,3 series Stochastics oscillator has burst to the upside, from
a bullish inverse head and shoulders bottom pattern.

The 8,16,9 MACD indicator is now flashing a key buy signal. Note how
rare these signals are, and the size of the price movements that tend to
follow them.

The key 5,15 moving average series is also on the cusp of a "king kong" sized
buy signal.

What about geopolitical price drivers? Well, please click
here now. While short term oscillators may be overbought, the longer
term charts suggest that "team top caller" could sustain a serious
beating, particularly if events in Iraq and the Ukraine worsen. On that
note, please click here now.

Looking at the key geopolitical gold price drivers, it's apparent that
the upcoming holiday week-end may not be a very pleasant one for the gold
bears.

I want to take a moment to discuss the Bitcoin phenomenon. Please click
here now. This daily bitcoin chart is very bullish.

Some analysts have tried to compare bitcoin to gold. I think that's a mistake,
but there is a role for bitcoin to play, as a global reserve currency. Here's
why: Central banks generally refuse to be audited, and they have treated
gold, generally speaking, with a fair amount of disrespect.

Gold is the ultimate form of money, and I'm not sure that central banks
deserve to hold any of it. The ultimate form of money should be in the hands
of citizens, not governments. Part of the reason I own bitcoin is because
I believe central banks will ultimately embrace it as part of a global reserve
currency.

Regardless, bitcoin is a minor holding for me, and I view it like a junior
stock. It's a speculation. From a perspective of risk, it shouldn't be compared
to gold, any more than a junior gold stock should be compared to gold.

The big picture for speculative junior gold stocks is very bright, because
inflation is beginning to rise in the West, and India is probably only ten
days away from officially ushering in a gold jewellery "bull era"!
Please click
here now. This monthly GDXJ chart is important. The 5,15 moving average
series is on the verge of what could be a "generational" buy signal.

Yesterday's close was critical, because it was not just the end of the
month,but the end of the quarter. Junior gold stocks staged a spectacular
ending to the first half of the year, on massive volume. This chart suggests
the second half of 2014 will be even better!

Special Offer For Website Readers: Please send me an Email to freereports4@gracelandupdates.com and
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has the best track record of leading the gold price, on the upside? I'll show
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of them.

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Written between 4am-7am. 5-6 issues per week. Emailed at aprox 8-9am daily.

Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the
Graceland Updates daily between 4am-7am. They are sent out around 8am-9am.
The newsletter is attractively priced and the format is a unique numbered point
form. Giving clarity of each point and saving valuable reading time.

Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor. The information provided
by Stewart and Graceland Updates is for general information purposes only.
Before taking any action on any investment, it is imperative that you consult
with multiple properly licensed, experienced and qualifed investment advisors
and get numerous opinions before taking any action. Your minimum risk on
any investment in the world is: 100% loss of all your money. You may be taking
or preparing to take leveraged positions in investments and not know it,
exposing yourself to unlimited risks. This is highly concerning if you are
an investor in any derivatives products. There is an approx $700 trillion
OTC Derivatives Iceberg with a tiny portion written off officially. The bottom
line: